U.S. IPO Trends

Includes: MERU, SSNC, STNG
by: Bespoke Investment Group

We saw 14 IPOs come to market in the month of March, and three begin trading today -- MERU, STNG, and SSNC. Below we highlight the monthly number of US IPOs since 1991, along with a chart of just the last 10 years as well.

As shown in the chart since 1991, the IPO market didn't get nearly as strong in the 2003-2007 bull market as it was during the 90s, and this isn't surprising given how crazy things got during the Internet bubble. And to say the IPO market was bad during the 2008-09 collapse is an understatement. From September 2008 to January 2009, just 4 IPOs came to market, which is unprecedented.

IPOs are starting to make a comeback, albeit a slow one. Since the bull market began last March, 112 IPOs have come to market. In the first year of the 2003-2007 bull market, there were 157 IPOs. The average monthly number of IPOs since last month is just over 8. To get to a healthy level, the average should get into the 20s.

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